say that it will work in a manner similar to some of the other options that are currently available in the market like the mobile transfer. In a mobile transfer, a sender needs to have a bank account. The sender deposits the money at a mobile shop from where the transaction ID or a code is sent to the recipient who needs to go to the mobile shop and provide the code and the transaction ID to receive the money.
“In this case a separate system would be prepared in tie up with mobile companies and the recipient would be able to withdraw the money from the ATM by punching the code in the machine,” said RK Bansal, ED, IDBI Bank. Bansal says that the sender will be required to have a bank account as of now.
In the second stage of this programme even the sender may not be required to have a bank account, making it accessible to more individuals.
IndiaPost also has a scheme in association with BSNL where money can be transferrer from one post office to another across the country. In this case also once the money to be transferred is deposited in the post office by a sender, a secret code is sent to the recipient’s mobile phone, who needs to visit a post office and show the code and an address proof to get the money from the post office.
While the current schemes charge a transaction fee of anywhere between 2 and 10 per cent of the amount transferred, sources close to the development say that the charges will be determined by individual banks in this case. It is, however, expected to be on the lower side.
While mobile shops have deeper penetration, bank ATMs do not have that and therefore access to this service may be limited to individuals who are in areas that are closer to a bank branch with an ATM.
In a bid to make this facility a success, the Reserve Bank of India will have to deepen the penetration of the ATMs in the country and bankers say that after public sector